topic Re: Need help with credit in Rebuilding Your Credit

Need help with credit

Anonymous — Wed, 30 Jan 2019 09:21:29 GMT

I'm trying to get my credit up fairly quickly it's at like 609 right now. I know why it's low....I had to use credit cards years ago when I wasn't making much and a lot of emergencies happened so I have gained 5k in credit card debt.

Now I'm making good money so I could pay it off by the end of the year but I'm in need of a truck and want to get a airstream at end of year so I was thinking of using my tax return to pay two cards off then get a personal loan to pay the rest off and get me a truck.

Is that a bad idea for my credit score or would that be an ok move? I have never missed a payment on anything if that helps.

Re: Need help with credit

DIYcredit — Wed, 30 Jan 2019 16:31:47 GMT

If you pay off the cc's way below 10% your Fico score will improve.Also learn the AZEO method.If you open a new personal loan you will have one hard inquiry and new recently opened account.The personal loan will lower you aaoa which will lower your score in the short term.Your score will improve as the personal loan ages.If you have no other installment loans this will add positively to your mix of credit.I hope this helps..

Re: Need help with credit

FireMedic1 — Wed, 30 Jan 2019 17:28:39 GMT

Thats great you trying to clean up your debts. Although taking out a loan to pay off a credit card and then another loan for the airstream. You only need 1 installment loan for FICO scoring. Just pay on the card and get you loan for the trailer. This will save 1 hit on a HP, new account and lower your AAoA. Why have 2 new accounts. Just have 1 and pay off the remanining CC over time for the same amount that you would have paid for the loan to pay the card off in the first place. Make sense?